Home On TV & Video Round Peg, Square Hole: Display Tactics Will Fail With Video Header Bidding

Round Peg, Square Hole: Display Tactics Will Fail With Video Header Bidding

SHARE:

On TV And Video” is a column exploring opportunities and challenges in advanced TV and video.

Today’s column is written by Tal Almany, senior director of advanced integrations at SpotX.

Header bidding exploded as a display tactic in online advertising, but adoption for video has been slower.

Many publishers and tech providers are taking what they’ve learned in the past three-plus years of display header bidding and trying to plug those practices into header bidding for video. That’s just not going to work.

While they are often leveraged to serve similar interests, video and display advertising are fundamentally different from an execution perspective in nearly every detail. Failure to understand this is perhaps the leading contributor to some of the industrywide confusion around the merits of video header bidding.

The complexity of video warrants an entirely different strategic approach for everything from optimization and monetization to containers and safety controls.

Container Strategies, Latency Issues

In display, it is completely acceptable – and sometimes recommended – to leverage multiple client-side header bidding partners within a container. But with video, this isn’t the best approach because content and ads typically originate from two different places: a content network and an ad server.

Once the viewer starts watching a video, the content and ads are then combined at the last second to create a single stream of content. Major issues, such as slow loading time and low-quality video, become apparent. Dynamic or server-side ad insertion can help alleviate these issues by stitching the content together, enabling a more seamless viewing experience. For this reason, a server-side solution is recommended and publishers shouldn’t add multiple client-side partners to the container.

Since video ads call for a heavier payload, publishers must closely monitor the user experience. Using a display container strategy for video can negatively impact revenue because more players will naturally cause increased latency.

Video media buyers can troubleshoot what’s happening post-auction with header bidding, which cannot be done in display since post-auction errors are not made available in that environment. With more granular competition and dynamic pricing in the ad server, sellers can theoretically reap more rewards when header bidding is at play.

Data And Security Strategies

Because video header bidding opens publisher inventory to multiple demand sources simultaneously, there is a perception that it also exposes publishers to the data leakage or ad fraud commonly found in display advertising. This is not the case; when executed correctly, video header bidding transactions shouldn’t be any more vulnerable than traditional tag-based solutions. Publishers that leverage video header bidding should apply the same degree of vigilance to header bidding inventory as they would to any other inventory type.

Effective video header bidding wrapper solutions should also be able to support integrations with quality or brand-safety verification vendors, such as Moat or DoubleVerify, which help ensure that inventory is accurately represented and measured. Verification for video is very different than for display because ad placements must support a VPAID-compliant video player to accurately measure viewability, brand safety and quality.

While display advertising has been around for nearly 20 years, video is still in its infancy in many ways. The medium is clearly more complex than display, and the technologies used to effectively manage it must be more sophisticated as well as specialized. When executed correctly, video header bidding can deliver impressive results, but that requires a depth of understanding and expertise that can’t be achieved by the flip of a switch.

Follow SpotX (@SpotX) and AdExchanger (@adexchanger) on Twitter.

Tagged in:

Must Read

Don’t Worry About Netflix – It’s Doing Fine Without Warner Bros. Discovery

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.

Paramount’s Upfront Pitch Is About Three Things

Paramount is merging the ad tech stacks behind Paramount+ and Pluto TV, releasing a new performance product, offering more control over ad placements and introducing dynamic ad insertion in live sports.

Hard Truths For Retail Media At The IAB Connected Commerce Summit

The IAB’s Connected Commerce event in New York City this week felt to me like the retail media industry’s first sit-down explanation to a child who is now a “big kid” and must act accordingly.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Meta Is Launching An Easy Button For CAPI

Meta is simplifying its CAPI setup and teaching its pixel new tricks, including adding an AI-powered feature that automatically pulls in data from an advertiser’s website.

TelevisaUnivision Joins The Streaming Self-Service Bandwagon

TelevisaUnivision is the latest TV publisher to join the self-serve trend that’s rising in popularity across connected TV advertising. Its streaming inventory is now available to buy through fullthrottle.ai’s self-serve platform. The collaboration includes an ad bidder designed to improve both targeting and measurement.

Comic: Gamechanger (Google lost the DOJ's search antitrust case)

For Google Advertisers Who Overpaid The Monopoly – Don’t Hate, Arbitrate

Law firm Keller Postman is leading mass arbitration suits against Google, seeking advertiser damages for alleged monopoly overpricing. The total available pot is a quarter-trillion dollars.